Wall Street Brief: Disney’s Profit BEATS, Knight Capital Gets Back to Normal
Walt Disney’s (NYSE:DIS) fiscal quarter three net profit rose 24 percent to a record $1.83 billion. This came from strong earnings in the company’s parks and resorts division, its cable TV channels, and its top movie “The Avengers.” Its $1.01 earnings per share exceeded forecasts, while the 4.4 percent revenue growth of $11.1 billion fell short of estimates.
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Along with Standard Chartered’s (SCBFF.PK) surprise by the publication of its Iran allegations by New York state, the Federal Reserve, Department of Justice and the Treasury were also caught off guard. The entities are also reviewing the “rogue” bank and some supposedly aren’t happy with New York, which grew impatient from the others’ inaction. Standard Chartered could pay a $700 million settlement.
Express Scripts’ (NASDAQ:ESRX) net profit plummeted 49 percent to $170.9 million in the second quarter. Revenue more than doubled to $27.69 billion, including Medco, with a $0.88 earnings per share; both exceeded expectations. Express Scripts increased its full year guidance above Street consensus, thanks to a strong second quarter, savings from its Medco deal and a higher utilization of profitable generic drugs.
Knight Capital (NYSE:KCG) will return to its NYSE market-making activities after getting most of its market share back on Tuesday. The firm allegedly spoke to around 90 possible suitors about saving it. Competitor Citadel offered a $500 million loan in exchange for a 10-20 percent share and control of Knight’s Hotspot FX trading platform. This alternative come in lower than the one Knight accepted: a $400 million loan from a group of investors in exchange for a 73 percent share.
Amazon (NASDAQ:AMZN) is seeing greater competition from clothing start-ups and eBay (NASDAQ:EBAY). With a start-up, it excludes middle men and produces items, avoiding warehouses; this undercuts Amazon. eBay has said it can assist retailers competitively with store fronts on its website. RadioShack (NYSE:RSH), Barnes & Noble (NYSE:BKS), and GNC (NYSE:GNC) will take up eBay on this offer.
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